FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Larkspur Co. sells $399,000 of 12% bonds on June 1, 2020. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2024. The bonds yield 8%. On October 1, 2021, Larkspur buys back $119,700 worth of bonds for $126,700 (includes accrued interest). Give entries through December 1, 2022. Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end. (Round answers to O decimal places, e.g. 38,548.) Date 6/1/20 12/1/20 6/1/21 12/1/21 6/1/22 12/1/22 6/1/23 12/1/23 6/1/24 $ Cash Paid $ Schedule of Bond Discount Amortization Effective-Interest Method Bonds Sold to Yield Interest Expense $ Premium Amortized $ Carrying Amount of Bonds
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Transcribed Image Text:Larkspur Co. sells $399,000 of 12% bonds on June 1, 2020. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2024. The bonds yield 8%. On October 1, 2021, Larkspur buys back $119,700 worth of bonds for $126,700 (includes accrued interest). Give entries through December 1, 2022. Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end. (Round answers to O decimal places, e.g. 38,548.) Date 6/1/20 12/1/20 6/1/21 12/1/21 6/1/22 12/1/22 6/1/23 12/1/23 6/1/24 $ Cash Paid $ Schedule of Bond Discount Amortization Effective-Interest Method Bonds Sold to Yield Interest Expense $ Premium Amortized $ Carrying Amount of Bonds
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